Solidion Technology Proposes Flux Power Acquisition, Faces Resistance

Solidion Technology has publicly proposed an all-cash offer to acquire Flux Power Holdings, but has encountered resistance from Flux's management and board. An open letter released by Solidion to Flux shareholders details the company's intentions and rationale behind the acquisition bid.

Jaymes Winters, Solidion's CEO, stated in the letter that Flux's financial performance has deteriorated, indicating a need for a change in leadership. He pointed to Flux's fiscal year 2026 revenue decline of approximately 37% to $42.1 million and an operating loss of $6.5 million. Additionally, Flux ended fiscal year 2026 with only about $0.3 million in cash and a cumulative deficit of approximately $113.8 million.

Flux's independent auditor has expressed substantial doubt about the company's ability to continue as a going concern, and Flux is required to raise at least $4 million in equity within 50 days under an existing loan agreement. Solidion contends that this requirement would lead to significant dilution for shareholders.

Solidion believes its offer would provide shareholders a clear choice between immediate cash and potentially little to no future compensation. The company plans to integrate Flux's business into its own growth strategy, leveraging its customer base, products, and manufacturing capabilities. Solidion highlights its own strong financial position, with approximately $27.7 million in cash and cash equivalents as of June 30, 2026, which would enable the creation of a more streamlined operational structure and foster growth.

Solidion has attempted to engage with Flux's management and board but feels they have not responded with the urgency the financial situation warrants. The company continues to pursue a transaction it believes would benefit both entities and their shareholders.